But I have a feeling we are talking cross purposes here. This is no discussion about wether notifications LEDs in general are usefull or not, its about placement and wether its worth the additional money/resources spent on. Trailing the question what you would ultimatly loose if things would not be done the way you would like it ? Another LED you would turn off, which costs are surely a lot lower than implementing an "exciting"/non boring, but totally pointless light up logo.
Right. So I guess your points are the following:
1. It is more expensive to put the led in the lid instead of in the case.
2. It is more expensive to do a nice backlit logo instead of just a simple small dot-shaped led.
3. The placement at the back of the screen makes it less useful than if it were put in a more strategic position, where it can also be seen while using the device and/or when the device is mostly in your pocket.
These are fair points and I agree with them. Function over form and all that. However, in my opinion:
1. The price difference is probably negligible, the extra bit of wire is not going to make a big difference.
2. I'm not sure how much the extra cost of this is, and I agree that it should be not too much. However:
2a. a larger colored area (regardless of the shape) does have some advantages: it's easier to recognize different color shades, and a brighter light (more visible from afar) is possible without being blinding if it is getting diffused on a large area instead of being concentrated at a point.
2b. I want some kind of logo (backlit or not) on the device anyway; you can call it just "advertizing" or "branding" if you want, but to some extent it also adds style and it helps to distinguish the device from other devices with a similar form-factor
2c. It also helps to distinguish different Pyras from one another since you can kind of customize the look of your Pyra by setting the logo color. Imagine multi-player games (with multiple Pyras) where each player has a color both in-game and on his or her Pyra logo. This would be pretty useful for semi-automated board games and stuff like that. So I disagree with your claim that it is "totally pointless".
3. Not necessarily:
3a. It also has potential advantages that the led is not visible for the user when he or she is looking at the screen. I could imagine multi-player games (played on one Pyra) where asymmetric information could be part of the game, e.g. some kind of quiz game where one player sees a question on the screen and the others see the yes/no answer on the logo led (or even multiple-choice with appropriate color coding).
3b. Arguably, when the device is lying on a table (which is in my opinion the most common use case for lid-closed visual notifications), a led on the back of the lid is the most visible spot. If you put it somewhere on one of the sides, it may be easier to inspect the led when you put it in your pocket with that side up, but the led may not be visible if the device is laying on the table facing the wrong direction. When the device is in your pocket, a vibrating alert is more suitable for notifications than a led.
I would actually prefer a tiny e-ink display in the front (between or next to the SD slots) or in the side (left or right, wherever the headphone jack and volume control is). Just large enough to show the time, some status information, or maybe song info and email subject lines.
To be clear: I'm not opposed to having extra leds in some strategic location. I'm just opposed to the idea that we should not have a light-up logo because it reminds some people of Apple-style form-over-function branding crap. Even though the light-up apples on the back of Apple laptops are indeed totally pointless branding crap, I think that if those were user-controllable RGB leds, then they would be pretty nice. Of course it will always be just a gimmick, not a core feature, but it would be somewhat useful at least.